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☆ How to cure a holiday debt hangover
▼ + stars: | 2023-01-24 | by ( Chris Taylor | ) www.reuters.com time to read: +5 min

Some call it the “holiday debt hangover,” and this year seems much worse than most. Some other worrisome findings: A quarter of people say they already regret their holiday purchases. “When people go into holiday credit-card debt, it’s not like the expenses stop there,” said Tori Dunlap, author of the new book “Financial Feminist” and founder of the site HerFirst100K.com. Think about shifting that debt over to a card where you will pay 0% for an introductory period. To figure out why you are going into holiday debt, you may have to do that hard emotional work, Dunlap said.

☆ Generation X carries the most credit card debt, study shows. Here's how to get those balances down
▼ + stars: | 2023-01-23 | by ( Sarah O'Brien | ) www.cnbc.com time to read: +3 min

Maskot | Digitalvision | Getty ImagesWhen it comes to credit card debt, Generation X may be struggling the most. "I think Gen Xers can be especially squeezed by credit card debt because they're living expensive years right now," said Ted Rossman, senior industry analyst for CreditCards.com. The cost of carrying credit card debt has become higherCredit card balances across all age groups hit $930 billion in the third quarter of 2022, according to the Federal Reserve Bank of New York's latest quarterly report on household debt. The average credit card now charges a record-high 20.16%, Rossman said. Those calculations, made using Credit Karma's credit card calculator, also assume no additional credit card debt was incurred while paying off that amount.

☆ Wells Fargo is retreating from the mortgage market it once led
▼ + stars: | 2023-01-10 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

New York CNN —Wells Fargo, long one of the biggest players in the mortgage business, is taking a big step back. Wells Fargo said it will also exit its correspondent business, which buys loans made by other lenders, and reduce the size of its mortgage servicing portfolio. The retreat will likely cause Wells Fargo to lay off at least some employees, though the bank did not announce any specifics. The move comes as Wells Fargo continues to be in trouble with regulators. In late 2017, Quicken Loans toppled Wells Fargo as America’s largest mortgage lender.

☆ Premarket stocks: Bruised tech investors are hedging their bets
▼ + stars: | 2023-01-10 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

New York CNN —There are two certainties in today’s market: The tech sector has been beaten down and interest rates are higher. What’s happening: Investors are purchasing put options, a bearish bet that a stock will fall during a set period of time, on certain tech stocks at historic rates. The losses also created a booming market for investors who hold put option contracts that allow investors to sell shares of these stocks at a price higher than their current levels. Rising interest rates also dried up the easy money tech companies relied on to fuel big bets on future innovations, and cut into their sky-high valuations. Beyond that, the growing number of layoffs may also give certain tech companies some cover to take more severe steps to trim costs now than they may have otherwise done.

☆ Americans lean more on credit cards as expenses stay high: 46% of cardholders now carry debt from month to month
▼ + stars: | 2023-01-10 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

With day-to-day expenses staying high due to inflation, more Americans are relying on credit cards to make ends meet. "The real test, of course, will be to follow whether these borrowers will be able to continue to make the payments on their credit cards." Now studies show fewer Americans are paying off their credit cards off in full. Not only can carrying a balance lower your credit score, but sky-high annual percentage rates also make credit cards one of the most expensive ways to borrow money. The average credit card rate is now 19.6%, on average — at an all-time high — after rising at the steepest annual pace ever, in step with the Federal Reserve's interest rate hikes to combat inflation.

☆ US consumers increased their borrowing by $28 billion in November
▼ + stars: | 2023-01-09 | by ( Alicia Wallace | ) edition.cnn.com time to read: +3 min

Minneapolis CNN —US consumers’ credit-hungry approach to spending continued in November, with borrowing rising by nearly $28 billion, according to Federal Reserve data released Monday. Revolving credit, which includes mostly credit cards, grew by 16.9%. It’s the largest jump in revolving credit seen in three months and the fifth-largest monthly increase in Fed record-keeping that goes back nearly 55 years. “It’s really revolving credit, mostly credit card debt, that’s carrying the day right now,” Rossman said. That has filtered down to historically high, if not record, interest rates for car loans, credit cards and personal loans.

☆ Here are some key things to consider before tapping your retirement savings to pay off credit card debt
▼ + stars: | 2022-12-30 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

As a result, they may be wondering if it's a good idea to tap their retirement savings to pay off the debt. Stopping your 401(k) contributions for a while — or at least cutting back — and redirecting those funds to debt payoff might make sense. For most others, though, there are more appealing options than a withdrawal, Rossman said. "Using a 401(k) loan to pay off high-interest debt, like credit cards, could reduce the amount you pay in interest to lenders," said Jessica Macdonald, head of editorial content at Fidelity Institutional. Other benefits to a 401(k) loan, Macdonald said, are that they don't require a credit check and they don't show up as debt on your credit report.

☆ Consumers kept the economy hot in 2022. Now they’re losing steam
▼ + stars: | 2022-12-28 | by ( Alicia Wallace | ) edition.cnn.com time to read: +8 min

Consumers armed with plenty of pandemic-induced pent-up demand and bountiful financial buffers kept the economy churning throughout much of 2022. “But I think there are reasonable worries that may not last.”Consumer spending remained resilient throughout much of 2022. But the household savings rate now sits at 2.4%, the lowest level since 2005 and the second-lowest rate going back more than 60 years. As of September 30, credit card delinquencies remained near historic lows with a 2.07% rate, according to Federal Reserve data. Persistently high inflation has consumers leaning more on credit cards and other forms of financing.

☆ 'Young adults are particularly vulnerable to delinquencies' — 1 in 5 have debt in collections, new report finds
▼ + stars: | 2022-12-21 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Americans across the board are struggling with credit card debt. "Young adults are particularly vulnerable," the authors of the report wrote. Overall, credit card balances are surging, up 15% in the most recent quarter, the largest annual jump in more than 20 years. At the same time, credit card rates are now over 19%, on average — an all-time high — and still rising. "Because young adults have this unique vulnerability, it's easier for a financial shock to happen and throw you off your path," Martinchek added.

☆ US consumers pulled back their spending last month as inflation took a toll
▼ + stars: | 2022-12-15 | by ( Alicia Wallace | ) edition.cnn.com time to read: +2 min

Pullbacks in auto sales helped drive the decline — the largest monthly decrease seen all year — but even excluding autos, monthly sales declined by 0.2%, despite cooling inflation. Economists had expected monthly sales to shrink by 0.1%, down from October’s 1.3% increase, according to consensus estimates on Refinitiv. Retail sales, which are not adjusted for inflation, were up 6.5% in November from the year prior, according to the report. That’s the slowest year-over-year retail sales growth since 2020, said Ted Rossman, senior industry analyst for Bankrate. “Credit card rates going up could cause more of a contraction, but hopefully [the Fed] gets a nice feather landing.”This story is developing and will be updated.

☆ Tipping Point: New tip guidelines for holiday giving
▼ + stars: | 2022-12-07 | by ( Chris Taylor | ) www.reuters.com time to read: +4 min

“I talk on etiquette issues all year long, and tipping is the one that always gets thousands of comments. The findings are a mixed bag for service providers, with some good news and some bad news about what is coming their way. But when it comes to holiday tipping, people just do not know what to do. That is called tipflation or tip creep, Farley says, and you should feel under no moral obligation to do so. But it's better to focus on the ongoing service providers in your life, who should be recognized with a healthy year-end tip.

☆ People with perfect credit scores have 3 key traits in common, Experian reports
▼ + stars: | 2022-12-02 | by ( Cheyenne Devon | ) www.cnbc.com time to read: +4 min

The few people who do manage to achieve perfect credit scores tend to share three key traits, according to Experian's latest analysis. People with perfect scores are typically older"You're not likely to see many 25-year-olds with a perfect credit score," Matt Schulz, chief credit analyst for LendingTree, tells CNBC Make It. People with 850 credit scores tend to carry about $2,588 in credit card debt, compared to the national average of $5,221. A near-perfect credit score is good enoughAlthough having a perfect 850 credit score may earn you bragging rights, it doesn't come with many additional benefits. "The reality is that you're not going to get anything with an 850 credit score than you wouldn't be able to get with an 830 credit score, or really even a 780 or 790 credit score," says Schulz.

Consumers are racking up credit card debt at a pace not seen in decades as inflation continues to pervade the U.S. economy. And while analysts say many U.S. consumers remain in good financial shape thanks mostly to low unemployment, the debt situation is growing dire. As the Federal Reserve has continued to lift interest rates to counter sky-high inflation, credit card rates have climbed to the highest levels ever measured. At just 2.1%, credit card delinquency rates remain below pre-pandemic levels. Still, said Raneri of TransUnion, as long as credit card companies are willing to continue to extend credit, credit scores will mostly remain unaffected.

☆ Residents of this state have the worst average credit score—see how you stack up
▼ + stars: | 2022-11-28 | by ( Ryan Ermey | ) www.cnbc.com time to read: +4 min

Read on to see the 10 states with the lowest average credit scores and what credit experts say you can do if you want to bring your score up. Credit scores generally run from 300 to 850, with scores over 750 considered "excellent." Plenty of Americans have some work to do on the credit score front. That's bad news for Mississippians, whose average credit score of 662 is the worst in the nation, according to a recent report from WalletHub , based on data from TransUnion. But being among the worst when it comes to credit scores is especially disappointing.

To combat high inflation, the Federal Reserve has raised interest rates this year at the fastest clip in 40 years. But analysts warn that high interest rates and potentially unfavorable terms can trip up shoppers, eroding the hoped-for savings. That’s the highest interest rate since the credit card marketplace began tracking it for store cards in 2018. Using credit cards can help build credit. And with fees and rates for new store cards even higher than the current record levels for traditional credit cards, “many people’s financial margin for error is basically zero,” Schulz says.

☆ Credit card balances jump 15%, highest leap in over 20 years, as Americans fall deeper in debt
▼ + stars: | 2022-11-16 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

Not only are credit card balances back to pre-pandemic levels, but consumers are also carrying balances for long periods. Among Americans who carry credit card debt from month to month, 60% have been in credit card debt for at least a year, according to CreditCards.com. As the Federal Reserve raises its target federal funds rate, credit card annual percentage rates are climbing, as well. High inflation and high interest rates are making it harder than ever to pay down credit card debt. As the federal funds rate rises, the prime rate does, as well, and credit card rates follow suit.

☆ Interest rates on retail credit cards are 'crazy high,' with some topping 30%. 4 things to consider before opening one
▼ + stars: | 2022-11-15 | by ( Lorie Konish | ) www.cnbc.com time to read: +5 min

Getty ImagesThat offer for a store credit card may sound tempting as you're shopping this holiday season. As the Federal Reserve raises interest rates, credit card annual percentage rates — a measure for the yearly cost of borrowing money — are climbing higher. That is especially true for retail credit cards, which tend to charge the most. Credit card interest rates more broadly recently soared to 19.04%. Borrowers with existing retail credit cards may also see the rates they are charged go up soon, Schulz said.

☆ Costlier credit: Some retailers' cards now carry APRs of more than 30%
▼ + stars: | 2022-11-15 | by ( Alicia Wallace | ) edition.cnn.com time to read: +3 min

Minneapolis CNN Business —There has long been a threshold that few issuers of store-branded credit cards have been willing to surpass: the 30% annual percentage rate. At least a half-dozen major retail credit cards — including those for Kroger, Bloomingdale’s, Macy’s, Shell, Exxon Mobil and Wayfair — recently bumped up their maximum APRs to more than 30%, according to Matt Schulz, chief credit analyst for LendingTree. And that credit is getting costlier as high inflation is forcing American consumers to rack up more debt. The increases come amid robust consumer demand and higher prices for everything from mortgages to food to fuel. “Credit cards are like power tools,” Rossman said.

The cost of carrying a balance on your credit card is now the highest it's been in more than 30 years. According to survey data from Bankrate.com, the average credit card interest rate has climbed to 19.04%. "Bankrate has been surveying credit card rates since 1985, and this eclipses the previous all-time high of 19.00% from July 1991," Bankrate chief financial analyst Greg McBride wrote on Wednesday. The new average represents a substantial increase from the 16.3% average rate for credit cards seen at the beginning of the year. Yet even as racking up large credit card balances can ultimately affect credit scores, and as the total amount of all credit card balances in the U.S. remains at record levels, delinquencies remain low, Rossman said.

☆ From buy now, pay later to Venmo, here are 4 of the best ways to pay for holiday gifts
▼ + stars: | 2022-11-09 | by ( Jessica Dickler | ) www.cnbc.com time to read: +6 min

From credit cards to cash, installment buying and payment apps, here's a breakdown of some of the best ways to pay this holiday. When it comes to holiday shopping, cashback or rewards cards offer an added bonus of 2% or more in certain categories. (CNBC’s Select has a full roundup of the best cards for holiday shopping.) "Credit cards should only be used if you can pay them in full each month," cautioned Chelsie Moore, director of wealth management solutions at Country Financial. The ability to spread out a purchase with no interest offers another distinct advantage over credit cards.

☆ Credit card rates hit a record high as Fed fights inflation
▼ + stars: | 2022-11-09 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

It’s never a great time to carry credit card debt. The spike comes after credit card balances rose sharply earlier this year amid high inflation, according to Federal Reserve research. Credit card debt can be punishing, even at lower rates. The good news is that despite high inflation, Americans are largely paying their credit card bills. Rossman recommends Americans struggling with credit card debt consider either taking out a low-rate personal loan or transferring their balance to a 0% balance transfer card.

☆ 3 in 5 Americans have made this money move—but it's 'not a good idea,' says lending expert
▼ + stars: | 2022-11-01 | by ( Ryan Ermey | ) www.cnbc.com time to read: +4 min

Here's how financial and etiquette experts say you can lend money without damaging your finances — or your friendships. Still, you may be tempted to help out someone in financial need — especially in today's difficult economy. "In general, my feeling is that it's not a good idea to lend to family and friends," says Ted Rossman, a senior industry analyst at CreditCards.com. If you've ever watched an episode of "Judge Judy," you know that lending money to a friend or loved one can come with disastrous results. And even if you don't urgently need the money, a failure to repay could lead to hurt feelings or awkward tension on both sides.

☆ Fintech firm Upgrade offers top U.S. savings rate of 3.5% as competition for deposits heats up
▼ + stars: | 2022-10-27 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

Credit-card startup Upgrade is releasing a new savings account with what it says is the country's top interest rate as competition for deposits heats up, CNBC has learned. The fintech firm's Premier Savings account is being launched Thursday with a 3.5% annual percentage yield, according to CEO Renaud Laplanche. That is higher than any account currently tracked by Bankrate.com, senior analyst Ted Rossman said in an e-mail. "At 3.5%, we're by far the best savings account in the country," Laplanche said during an interview. "This suggests that deposit-pricing pressure is becoming more widely dispersed across the banking industry as rates move sharply higher," Graseck said.

☆ Visa profit beats as payment volumes surge on travel demand
▼ + stars: | 2022-10-25 | by ( Mehnaz Yasmin | ) www.reuters.com time to read: +2 min

"Travel outbound from the U.S. to all geographies continue to pick up steam," Chief Financial Officer Vasant Prabhu said on a post-earnings call. "The strong dollar and delays in visa issuance from some countries appear to be impacting travel into the U.S," he added. Transactions processed at the world's largest payments processor rose 12% on a constant dollar basis to 50.9 billion in the fourth quarter ended Sept. 30. On a constant dollar basis, Visa's payment volumes surged 10%, while cross-border volumes - a key measure that tracks spending on cards beyond the country of issue - jumped 36%. Excluding items, the world's largest payments processor reported a profit of $1.93 a share, beating estimates of $1.86, according to Refinitiv IBES data.

☆ Visa profit rises as U.S. travel spending boosts payment volumes
▼ + stars: | 2022-10-25 | by ( Mehnaz Yasmin | ) www.reuters.com time to read: +2 min

"Visa continues to benefit from the travel rebound and the ongoing shift away from cash," said Ted Rossman, senior industry analyst at Bankrate.com. Visa results mirror that of American Express (AXP.N), which reported a stronger-than-expected profit as travel and entertainment spending in international markets surpassed pre-pandemic levels for the first time on Friday. On a constant dollar basis, Visa's payment volumes surged 10%, while cross-border volumes - a key measure that tracks spending on cards beyond the country of issue - jumped 36% for the three months ended Sept. 30. Transactions processed by Visa also rose 12% on a constant dollar basis to 50.9 billion in the three months ended Sept 30. Net income was $3.9 billion, or $1.86 per share, in the three months ended Sept. 30, compared with $3.6 billion, or $1.65 a share, a year earlier.

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